Mart Resources Inc MAUXF

RE: financing

[OILANDGAS]

The risk is three fold: 1) Political risk as you stated 2) Partner risk because they are Nigerian companies who must pay their fair share of the costs of field development and facilities. These type companies are notorious for not paying their share of costs and extracting additional funds to get government approval to move the project along. They must grease the palm of their buddies in the government and that comes out of Mart’s pockets. 3) Geological risk is the reserves for this pool which is demonstrated by the thin pays encountered in UMU-4. The oil is there and the productivity is there but how much oil is contained in the pool. They must re-complete UMU-N2 and drill the twin to UMU-1 to see what capacity they need for the pipeline and get a better idea of the reserves for the pool. Once they do that they can build the pipeline to get some cash flow and then drill additional wells to increase the reserves and productivity from the pool.